Study: Gas drilling will hurt local tourism

Jul. 8, 2011

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Widespread Marcellus Shale drilling in the Southern Tier could substantially damage the long-term growth of the local tourism industry, according to a study released by the Southern Tier Central Regional Planning & Development Board.

Individual gas wells and drilling activity, while disruptive at the local scale, will likely have very little impact on the tourism sector, the study says. But increased traffic, air and noise pollution, industrial accidents, the decreased availability of hotel/motel rooms and seasonal lodging, disruptions to wildlife and hunting grounds, and other aspects associated with a large-scale drilling program "will change the pristine and rural character of the region to a gritty and industrial one."

The 35-page document, funded by a $7,000 Appalachian Regional Commission grant and prepared by Cornell University graduate and Ph.D. candidate Andrew Rumbach, was released to the public Wednesday. It focuses solely on Chemung, Schuyler and Steuben counties.

Marcia Weber, executive director of Southern Tier Central, said the agency's goal was to create a balanced report.

"I did think it was balanced, but I was not surprised by the results because we've been involved as the study was being developed," she said. "We were relieved that there were recommendations so we can start preparing now to mitigate any future problems that might arise."

Weber also said the study is a starting point to begin discussions that will proactively deal with the drilling-related issues that could affect tourism in Chemung, Schuyler and Steuben counties.

"We also have a staff person who is concentrating on Marcellus Shale issues who is working with county task forces and who will be available to help in the further discussion of some of these plans," Weber said.

Reaction to the study among the organizations that promote tourism, who hadn't reviewed the study in detail, was guarded.

"While we have trouble with some of the study's particulars, it does illustrate the importance of the chamber's premise that our community must take the necessary steps to maximize the benefits while minimizing the costs of drilling," said Kevin Keeley, president of the Chemung County Chamber of Commerce.

"In our Chemung County market, we believe we can capitalize on Marcellus Shale opportunities without jeopardizing the best interests of our environment and of our tourism economy. Such a win/win scenario is not only possible but absolutely crucial."

Kelsey Jones, executive director of Schuyler County Partnership for Economic Development, took issue with some of the employment statistics listed for his county.

"It was a great idea to do the study and there is some good information for counties, chambers and businesses involved in tourism; certainly for us here in Schuyler County," he said. "It's good information, but there's so much we don't know yet and a lot of things may change as we go forward."

Peggy Coleman, president of the Steuben County Conference and Visitors Bureau, said she hoped the study would examine all aspects of gas drilling's impact on the tourism.

"And I think it did a thorough job," she said. "I believe if we can be proactive we can try to mitigate the 'boom-bust' cycle that has happened in other destinations. There are aspects that can be investigated further, like the impact on wildlife and our wineries, but it's an excellent first step."

Chemung and Steuben counties — where tourism spending in 2008 totaled $89.2 million and $123.5 million, respectively — will likely see more gas drilling activity than Schuyler County, due to being situated over a larger portion of the Marcellus Shale.

Tourism spending in Schuyler County's totaled $26.4 million in 2008, according to the study.

Study suggestions

The impact on the counties will be directly related to the level of drilling activity, which itself will be affected by the availability of work crews and drilling equipment. But even with those limitations affecting the drilling program in Pennsylvania's Northern Tier, the landscape there is quickly shifting from rural and agricultural to industrial, the study says.

The study goes on to say that shale gas drilling in states likes Wyoming and Texas also has had serious economic consequences for adjacent industries like agriculture and tourism, because of the widespread industrial activity that accompanies drilling.

However, in addition to identifying the detrimental effect widespread Marcellus drilling can have on regional tourism, the study also suggests ways to minimize the impact. Local governments have the ability to regulate industrial development associated with gas drilling through zoning or the site planning process, the study says. Steps can be taken to minimize the visual impact of drilling activities, which can also be included in regulations developed by local governments.

The study also suggests the counties re-examine their policies for hotel room taxes — a surcharge added to the state and local taxes on hotel/motel rooms that is used to support tourism programs across the region. Although the influx of gas workers is boosting the occupancy rates of hotels and motels, many of those gas workers do not pay room tax because of an exclusion that exempts the room tax for long-term stays.

Counties should revise their room tax laws to "capture all revenues associated with hotel and motel room sales," the study recommends because the additional revenue will "be crucial resources for tourism promoters as they struggle to counteract the negative impacts of gas drilling."